If you’ve driven past the Fashion Mall at Keystone recently, you’ve probably noticed the giant hole in the skyline where the luxury mainstays used to be. Specifically, the spot where Saks Fifth Avenue Keystone stood for over two decades. Honestly, it’s a bit weird. For years, that southeastern corner of the mall was the "fancy" anchor—the place where you went if you needed a $400 bottle of perfume or a designer handbag that cost more than your first car.
But as of mid-2024, the doors are locked. The mannequins are gone.
Most people were blindsided when the news broke. One day it was the center of Indiana’s high-end fashion universe; the next, Simon Property Group was talking about demolition. It wasn’t a "going out of business" failure in the traditional sense, though. It was something way more calculated.
The Real Reason Saks Fifth Avenue Keystone Vanished
Let’s be real: departmental retail is struggling everywhere. But at Keystone at the Crossing, the situation was unique. The lease was up. Simon Property Group, who owns the mall, didn’t just want another tenant. They wanted a total vibe shift.
Saks had been in that 120,000-square-foot space since 2003. They took over after Jacobson’s went bust. But by 2024, the top floor of Saks was basically a ghost town. You could wander for twenty minutes without seeing a sales associate. It just wasn't efficient. Simon realized they could do more with the land if they literally tore the building down.
And that's exactly what they did. Well, most of it.
They kept about a third of the original Saks structure because it had "good bones." The rest? Leveled. They are currently trading racks of Prada for "Class A" office space and outdoor plazas. It’s a gamble. They’re betting that people want to work and eat near where they shop, rather than just walking through a massive, half-empty department store.
What is "One Keystone Crossing"?
This is the name of the new project rising from the ashes of Saks. If you’re looking for where to buy your luxury goods now, you won't find them in a giant department store format here. Instead, "One Keystone Crossing" is a 100,000-square-foot office building.
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It's going to be four stories tall.
It’ll have floor-to-ceiling glass.
It’s basically designed for companies that want to flex on their clients.
But for those of us who just liked the shopping, there’s a silver lining. The ground floor is being reserved for "first-to-market" restaurants and high-end boutiques. Simon is being pretty secretive about the exact names, but the rumor mill is spinning with talk of upscale home furnishings and sit-down dining that Indy hasn’t seen before. They’re drawing inspiration from "San Diego aesthetics"—think open-air lounges and lots of greenery.
The 2026 Timeline: When Does it Actually Open?
Construction is in full swing right now. If you’ve been through the 86th Street corridor lately, you know it’s a mess of orange cones and cranes.
- The Demolition Phase: Finished in late 2024.
- The Build: Happening all through 2025.
- The Grand Opening: Target date is the fourth quarter of 2026.
Basically, we have to wait another year or so to see the finished product. In the meantime, the mall is still very much alive. Nordstrom is still holding down the other end, and brands like Gucci and Louis Vuitton are still tucked inside the main corridor. Interestingly, despite the Saks Fifth Avenue Keystone closure, the mall is actually one of the most productive in the country for Simon. It’s in their top 50.
Where to Find Saks Now (It’s Not Entirely Gone)
Here is a detail most people miss: Saks didn’t totally abandon Indianapolis.
They just changed their business model.
If you still need that "Saks experience," they opened something called The Fifth Avenue Club at Indy. It’s located at 2721 E. 86th St. It’s not a store where you browse. It’s an appointment-only styling suite. You book a time, a stylist pulls clothes based on your taste, and you try them on in a private lounge. It’s very "hush-hush" and exclusive.
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Kinda fancy, right?
It reflects a massive shift in how luxury works. They don't want to pay for 120,000 square feet of air conditioning and security if most people are buying their bags online anyway. They’d rather have a small, high-touch suite for the big spenders.
The Bankruptcy Elephant in the Room
We can't talk about Saks Fifth Avenue Keystone without mentioning that the parent company, Saks Global, recently filed for Chapter 11 bankruptcy in early 2026.
Don't panic.
Chapter 11 usually means restructuring, not disappearing. They got about $1.75 billion in financing to keep things moving. Part of the reason they are in this mess is the massive $2.65 billion deal they made to buy Neiman Marcus. They took on a ton of debt, and luxury sales globally have been a bit "meh" for the last two years.
This bankruptcy actually explains why the Keystone store closure was a smart move in hindsight. By getting out of that massive lease early and moving to a styling-suite model, they cut their overhead before the financial storm hit.
Why This Matters for Indy Shoppers
If you’re a regular at the Fashion Mall, the 2026 opening of One Keystone Crossing will likely change how you use the space. It’s moving away from the "all-day indoor mall" vibe and toward a "lifestyle center."
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- More Outdoor Space: There will be a green plaza for community events.
- Dining Over Shopping: Expect the ratio of restaurants to stores to tilt even further toward food.
- The "Live-Work-Play" Myth: It’s becoming a reality. People will be working in those offices and then heading down to the plaza for a cocktail.
Moving Forward: Actionable Steps for the Displaced Shopper
Since the physical store is gone, you have a few options if you’re still looking for that specific Saks brand mix.
First, check out the Fifth Avenue Club on 86th Street. It’s literally right down the road from the mall. You have to book in advance, so don't just show up and pull on the door. It’s great if you have a specific event—like a wedding or a gala—and need a professional eye.
Second, keep an eye on the Saks Off 5th locations. While several of these are slated for closure in 2026 across the country (like in Chicago and DC), the remaining ones are still a solid bet for discounted luxury.
Lastly, if you really miss the "big" department store experience, your closest options are now Chicago or Columbus. It’s a trek, but for some, the Nordstrom at Keystone just doesn't hit the same way.
The redevelopment of the old Saks Fifth Avenue Keystone site is a clear signal that the era of the giant, monolithic department store is over in Indianapolis. What’s coming next is smaller, more expensive, and definitely more focused on the "experience" of being there rather than just the stuff on the shelves.
Keep an eye on the southeast corner of the mall. By the time the 2026 holiday season rolls around, that construction site will be the new centerpiece of Indy’s north side.
Current Status Summary
| Feature | Details |
|---|---|
| Physical Store | Closed permanently as of July 2024 |
| Replacement Project | One Keystone Crossing (Offices/Retail/Plaza) |
| Projected Completion | Q4 2026 |
| Local Presence | The Fifth Avenue Club (Appointment-only styling) |
Key Takeaway for 2026
The transformation of the Saks site into One Keystone Crossing marks a pivot from traditional retail to a mixed-use "lifestyle" hub. While the loss of the physical anchor store felt like a blow to some, the $1.7 billion restructuring of Saks Global suggests the brand is moving toward digital and boutique-style services rather than maintaining massive, underutilized storefronts. Expect the new plaza to be the "it" spot for dining by next winter.